India’s digital payment landscape will undergo significant reforms as the Reserve Bank of India (RBI) introduces a risk-based authentication model effective April 2026, moving beyond traditional OTP methods. This new framework aims to enhance security by evaluating transaction risk through various signals, including device behavior and location, while maintaining user convenience. Experts believe the RBI’s approach positions India as a potential leader in global digital payment standards, promoting a mature, zero-trust architecture. However, challenges remain, such as the need for banks to upgrade their systems and ensure compliance with new regulations, highlighting the critical balance between innovation and security in India’s rapidly evolving fintech ecosystem.